Goldman Sachs Group, Inc. is expected to be bullish on Apple Inc. (AAPL.US) with Q3 revenue and EPS likely to exceed expectations.

Goldman Sachs Group, Inc. has released a research report, giving Apple Inc. (AAPL.US) a "buy" rating with a target price of $251. Apple Inc. is expected to announce its third-quarter performance for the 2025 fiscal year on July 31st, Eastern Time, with Goldman Sachs Group, Inc. forecasting that its revenue and earnings per share will exceed market expectations. Specifically, Goldman Sachs Group, Inc. predicts Apple Inc.'s Q3 revenue to be $89.5 billion, a 4% increase year-on-year, surpassing the market's expected $89.1 billion. Earnings per share are expected to be $1.45, also exceeding the market's expected $1.42. The main factors driving Apple Inc.'s revenue and earnings to exceed expectations include: double-digit growth in service business revenue (11% year-on-year); strong performance in product lines like iPhone, Mac, iPad, and wearables; better-than-expected gross margin improvement, benefiting from optimized tariff-related costs and weakened foreign exchange headwinds. Goldman Sachs Group, Inc. states that the growth in Apple Inc.'s service business revenue will remain resilient, mainly due to the continued acceleration in App Store consumption growth, despite the increased uncertainty on the platform from opening up third-party payment channels. In the next 12 months, iPhone upgrade demand will be supported by two main factors: increased promotional efforts by US wireless carriers and product innovations including smart features and design changes by Apple Inc. However, uncertainties in trade policy and tariffs, as well as risks to Apple Inc.'s advertising revenue, remain short-term bearish factors to be cautious of. Looking ahead to the fourth quarter of the 2025 fiscal year, Goldman Sachs Group, Inc. predicts Apple Inc.'s revenue to be $99.5 billion, earnings per share to be $1.70, and gross margin to be 45.9%, all better than the market's general expectations. With further innovations in iPhone design and software driving them, Apple Inc. is expected to see an iPhone upgrade cycle in the 2025 and 2026 fiscal years. As of Thursday's close on the US stock market, Apple Inc. fell by 0.18%, to $213.76. The stock has declined by 14% year-to-date.